It's time for this weeks reader question! This weeks reader question is what is the average cost to build a home in Arizona (2014)? If you have a question for Wednesday's reader question series then contact me!

This question is well-timed. Since we are thinking of building a home this question is going to be relevant for us soon! Unfortunately, it is hard to answer because it depends on what you want.

Arizona Land Costs

Land costs are going to vary depending on where you are at and where you want your home. Land prices right now (in 2014) in the Tucson area seem to be:

rural lots that do not have water and are far from utilities are going for around $5K per acre.

Rural lots that have utilities close by seem to be going for around $10-$15K per acre.

Rural lots that have utilities close by and water access are going for $25-$40K per acre.

Lots in highly desirable locations close to utilities are going for $40-$70K per acre.

This is for custom build homes. If you want a subdivision lot then most are part of an HOA and contracted builder. Water access is expensive in Arizona. If you have to build a well you might have to dig pretty deep, which is costly. Lots far from utility lines can also be expensive when you have to get electric and/or gas to the property.

Arizona Home Costs

Home costs are hard to nail down because it really does depend on what you want. I have been quoted:

low end companies that will build for $80-$110 per square foot ($160-$220K for a 2000 square foot home)

mid range companies that will build for $125-$185 per square foot ($250-$370K for a 2000 square foot home)

high range do anything you want companies that will build for $275-$325 per square foot ($550-$650K for a 2000 square foot home)

Arizona Compared to Different Areas of the United States

If you are coming from a different state then this will give you an idea of the price difference between your area and Arizona.

If you live in the south, a custom home in Arizona will cost you 39% more (your $250K home will cost $348K here)

If you live in the midwest, a custom home in Arizona will cost you 29% more (your $250K home will cost $323K here)

If you live in the northwest the same custom home in Arizona will cost you 4% more (your $250K home will cost $260K here)

Hey there! I agree costs do depend on details and how you want your home. I suggest if you are familiar with construction, take on some projects yourself, and save money! I would also suggest investing in a portable generator so you will always have power when constructing.

Very interesting question but well answered!! Yeah it difficult to estimate a budget for home building without knowing all asks of home owner. Different expectation of home interior and outdoor decoration will certainly increase home building cost. Though I really like the potential costing details presented here in this article. Thanks for great sharing. 🙂

Settlers West is the cheapest I could find. http://tucsonhomebuilder.sitecube.com/ There are lots of companies in the mid-range and many of those are willing to do anything for you – going into the high end market. Pure Build is one that does rammed earth homes – unique builds can cost a lot more (but you will save on energy bills) purebuildhomes.com. The SAHBA home show at the Tucson Convention Hall (March and October) is a great place to start. There are lots of builders in the mid and upper range. Please keep in mind that I do not have personal experience with either of the builders I linked to!Heidi recently posted…Sew Easy DIY Homemade Hand Warmers

I have been living in Southern CA for 8 years and i see here the real estate market is very competitive and needs a lot of money to invest, i am thinking to start with purchase a lot in Arizona, build it up then sell. I assumed that the prices there are more affordable than CA, any thoughts or recommendations , how successful would be this idea ?

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